Devising a Corporate Facility Location Strategy to Maximize Shareholder Wealth

Posted: 20 May 1999

See all articles by Chris Manning

Chris Manning

Loyola Marymount University - Department of Finance and Computer Information Systems

Mauricio Rodriguez

Texas Christian University

Chinmoy Ghosh

University of Connecticut - Department of Finance

Abstract

Location decisions should consider all related impacts upon a firm's shareholder wealth. Overall, firm cost savings available at alternative locations need to be carefully examined in addition to a location's impact on corporate sales revenues. This article reviews relevant literature, discusses recent location decision considerations for several companies and empirically tests a model seeking to measure the impact corporate relocation decisions have upon shareholder wealth. In addition, a classification and listing of corporate location considerations is put forth to supplement the anecdotal illustrations discussed herein. Together these represent a "primer" for professionals and executives involved in corporate facility location decisions.

JEL Classification: R33

Suggested Citation

Manning, Chris and Rodriguez, Mauricio and Ghosh, Chinmoy, Devising a Corporate Facility Location Strategy to Maximize Shareholder Wealth. Available at SSRN: https://ssrn.com/abstract=163612

Chris Manning (Contact Author)

Loyola Marymount University - Department of Finance and Computer Information Systems ( email )

Los Angeles, CA 90045
United States
310-541-0353 (Phone)
310-377-4335 (Fax)

Mauricio Rodriguez

Texas Christian University ( email )

P.O. Box 298530
Fort Worth, TX 76129
United States
817-921-7514 (Phone)
817-921-7227 (Fax)

Chinmoy Ghosh

University of Connecticut - Department of Finance ( email )

School of Business
2100 Hillside Road
Storrs, CT 06269
United States
860-486-3040 (Phone)
860-486-0349 (Fax)

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